tv Closing Bell With Maria Bartiromo CNBC November 25, 2013 4:00pm-5:01pm EST
up they're underinvested, they see these milestones another record and maybe they want to get in. >> they are starting to get in. that's one of the things you're seeing. that's a little scary. that's a little scary when you start seeing retail investors get back in the market. >> thanks. peter costa, have a good thanksgiving. second hour of the "closing bell" begins right now with kelly evans. thank you. trading day coming to a close. business day continues and it is another record day on wall street. the dow closing at another fresh high. welcome to the "closing bell." i'm kelly evans. here's how we're finishing the day. dow managing to be positive barely 12 points. that does enough to put it at record high. the nasdaq adding barely three points. s&p down. now, the nasdaq making headlines, trading above 4,000 for the first time in 13 years
but it couldn't hold onto the close -- couldn't hold onto that level, we should say. the entire market losing altitude in the final hour. let's bring in the closing bell panel and figure out what we learned today. joining us jon fortt, kenny from o'neill securities who is just finishing up trading on the floor and he'll be be shortly. sheila over at the nasdaq. it was nasdaq 4,000 all the talk earlier today. by the close it was the hit social media was taking. what's going on? >> we managed to eke out a gain at nasdaq six points away. you mentioned social media. bigger picture it's the momentum stocks today everyone was talking about. facebook was definitely one of them. tesla, green mountain coffee baidu, names down today. exact same names that led the nasdaq higher. everyone focused on the momentum stocks. >> sheila, thanks. dan, i'm curious, why is it we're seeing some momentum coming out of the market today?
>> listen, you focus in on any one particular area of the market. in this case the social media names and other high fliers and you'll see weakness. con conversely, you look at broad -- >> it could have been different had we closed ten minutes earlier. >> that's true. in the face of tesla's monumental decline and a number of other stocks that have suffered, in particular twitter, obviously, since its ipo, the market is up north of 1800, new highs, give or take. the broader market is doing fairly well in the face of weakness in individual stocks. >> you're smiling. >> i have another name for these stocks. i call them the rob ford stocks because anyone who buys the valuation must be smoking crack. they're completely overvalued. i think as we head into the end of the year you'll see people reshuffling portfolios riskier names may be coming out, staying in names that aren't as risky to lock in returns for the end of
the year. >> jon, that's strong language. >> it is strong language. what's interesting, it's not just the high valuation social media stocks suffering today. taking a look at some of the ones i'm watching sales force, high valuation still. rack space, ebay down 2.5. i mean there are a lot of stocks here that don't just fit that social media mold. san disk flash memory. >> let me add, all these stocks are overvalued 37. they're trading at those valuations because they have a higher growth rate. in a market where valuation is hard to come by not what we've seen over the last month or two or six, investors will play for valuation. >> kenny, what is the talk? is it about valuation, about some momentum names? >> certainly some of those names we saw come under pressure today, social media names. ones that have been overdone. for the most part i think the talk has been about, as we move into the end of the year asset
reallocation asset managers take outliars repositioning that, taking that cash and moving it into stocks and groups and sectors they think will do better next year. it makes perfect sense for them to be doing that. names that outperformed are the ones you'll see most of the cash come out of as they start to raise cash. >> that's interesting. people say, this group has performed well for me. i'm going to lock it in here. where do you think they look to now? >> what social media names -- >> no. the investor who might have been in the social media stock for the last year where do you think they put the money? >> i think some will go into european names, some into emerging market and i think some will go into -- in the u.s. sectors people are looking forward to in the recovery. big industrial names will do well next year. i think the banks will certainly do well next year o top of a good year this year. those are kind of the names i'm -- infrastructure type names. ones that will benefit from a global recovery. >> i think someone who might have a few names for us. jim cramer is going to jump into the fray here.
kenny was saying industrials, banks, we began to see a bit of a pop in the banks today. you think that will continue? >> banks are undervalued. please. the banks are well behind the market. they're starting to catch a bid. notice the oils didn't do nearly as bad people thought coming in this morning. quick rotation. rotation out of a name like h hayne, i have irwin on the show. the laggards, bank of america looked good. biotechs looked good. some days aren't that fulcrum of a day. today is not a meaningful day. money going and-n and out -- >> you don't think it's -- yelp down 6.5% you're going, look that's high beta you can expect those kind of moves, it's not the start necessarily of a broader reallocation of money? >> we have companies coming against each other in that world. i think that matters. take a look at work day. they reported after the bell. that's probably the most
expensive stock. the stock's trading up three. it's case by case. if work day's up, and that's 9 0 times, you know 2016 earnings, if that stock is going to trade up tomorrow, then you're going to see a reversal of a lot of the selloff, including sales force. workday will be the tale of the tape tomorrow. >> kelly, let me add. it wasn't high beta names that were off. biotech, nasdaq biotech index hitting another record today. we saw real strength in that group. the risk-on trade is definitely there, as jim said in pockets, as evidenced by biotech. >> good point. that's what jon was saying earlier. it wasn't just some of the more well-known candidates. >> you know who's up today? interested in jim's thoughts on this. apple, google and amazon. google up above 1 sthou. amazon, sky high valuation. apple usually can't catch a break so it's interesting these huge tech companies are having a good day while the rest are in
the. >> jon google introducing new products. people excited about apple. people want to see apple has a pulse. amazon, the word is they're having a great holiday season. you know, amazon is the one that's the outlier. it's allowing a lot of stocks to trade up. people are just -- people just hate amazon. when you go out with actual ceos they just hate what amazon amazon, the stock is doing. >> it's so true. >> jim, let me ask you a quick question. how negative can you get on something like the nasdaq 100 more generally if you have 33% of the index is google apple, amazon and some of the big cap, and biotechs still doing strong still m&a bid. how negative can you get on the sector generally if they do well next year? . it's hard. when i back out the google cash the stock is not that expensive. apple is one of the cheapest stocks in the market. amazon is a cold stock. you can't really value it the way the others. celgene, i can come up with a $17 in 2015. that company is generating a huge amount of money.
gilead, if the hep c pill works out, it's cheap. i think they're not absurdly valued. they're cheaper than pfizer on 2018 earnings. >> that echoes some of the action in clorox. kenny wanted to jump in. >> the point was made. we were talking about momentum names. a lot of names we saw under pressure today, they kind of follow the momentum. everyone jumps on when they want to take money out of it. like jim said if tomorrow they find a bid, they'll run back up on sentiment, the more trader type are the ones pushing those around. >> right, right. exactly. that's why you have to look at palo alto networks, just reported. it's hard to work and looking at stuff but this is a live show. that's part of the greatness of live, you're not looking up all the time. you're doing work. paola alto is up. that's cyber security. look at workday, now jumped three points. this is the reality. have you to deal with relate not yesterday. >> so true. jim cramer thank you so much for some of your time this
afternoon. what's coming up tonight? >> we've got first solar. you want high value, it used to be it's not anymore. hayne down three. that's why it's over. down three. and rand gold. gold, did it catch a bid? some feel it's bottoming. gol is the bottom of the gold if you believe. >> that's awe dangerous one. we'll see you in the morning. one stock selling off is lionsgate, despite the new hunger games film took in $300 million internationally. if there was ever an instance of buy the rumor, sell the news this might be it. >> here's the thing, the news itself was really good. $160 million at u.s. box office shattered records for the biggest november opening ever. i think what really happened here is that investors were hoping for more like $170 million, $175 million at u.s. box office. there was hope it would beat "iron man 3" with biggest domestic opening so far this
year. i think we have to keep in mind the difference between $160 and $170 in terms of lions gate bottoms line it doesn't add up to a lot. >> at the same time this is what's interesting, there's this narrative that's changing now, saying, well maybe $10 or $20 million isn't a huge difference but what happens if they're behind it. >> i would like to throw that back to julia. how much of this is about the hunger games today versus what the pipeline is for the future? i think there was so much anticipation around this film and everybody's so focused on the opening and then they look ahead. how much of this price selloff has to do with the future pipeline? >> well here's the thing. it's going to be several years before they're done with hunger games. no question, hunger games is a massive franchise. and whether it grosses $160 or $170 million u.s. opening weekend, i think it's still a huge franchise. i think looking forward, lion's gate has been smart. they split the third and final book into two movies which means
this franchise is going to continue to bolster lion's gate bottom line well through fiscal 2016. it's really -- they have a long time before they have to start worrying about it. the big question is whether they can use this global strength of the hunger games brand to really help them introduce new franchises. obviously, they have to keep coming up with more successful movie franchises. the stronger this franchise, the stronger the studio. >> i was going to say, i hate it when they break up the last installment. get it over with. create the excitement about the final movie and be done with it. but as you say, the stakes are high here. we'll be watching. julia joining us. we have to take a quick break. how much more mojo do these markets have? john calamos will be joining me. you want his outlook for stocks. forget interest on your savings account. what if we said banks may soon be charging you to hold your money? seriously, this could happen.
that story is next. we'll ask former wells fargo boss dick kovacevich about it. and walmart gets a new ceo. what do we make of the timing of announcement and the fact he is 47? yeah does age really matter here? you're watching cnbc, first in business worldwide. honestly? no way did i think a tablet was gonna be a good deal. you're talking to the guy who hasn't approved a new stapler purchase in three years. but then i saw the new windows tablet,
welcome back. let's quickly send it over to dominic chu for a market update. >> palo aillto is up saying subscription based revenue model grew 7% year over year. those shares certainly ones to watch in the aftermarket. back to you. >> we will. thanks. the nasdaq hitting a major milestone, trading to the 4,000 mark for the first time since september 2000. it did fade in the final hour. that will be one to watch for the rest of the week. now we want to bring in market veteran john calamos, joining me exclusively. thank you for your time. we want your thoughts as we hit
record highs, can the market keep climbing? >> i think it can, kelly. we're in the risk on/risk on phase, which is obviously making investors nervous in here. but to us that's kind of normal for the mid-market cycle. we're still positive going forward in here. >> at the same time john risk on/risk off seemed to dominate for the last several years before we got to a period like we seem to be seeing now where stocks are rising and the yield on treasury debt is rising as well. in other words, you know, there's this kind of sense of is good news good news? is the fed going to be able to taper and everything will be okay? if the environment is changing, and i'm curious if you think it is is it changing for the better? >> yeah, i think it is. obviously, the tapering eventually is going to be good news because that's really going to mean that the fed is confident that the economy's grown at a faster pace. as you know, the market's been
doing very well but the economy's still at a slower pace. so, when they eventually taper, which i don't think is going to be you know at least not till march and probably later, but that will be good news because the fed will have confidence that the economy is growing. there's a lot of positive factors out there. >> a good source of mine likes to say doesn't matter if interest rates are minus 4 % or plus 4% because they have to make returns. >> i think what happens in the equity markets, you go from more of a fixed income yield regime to more of a growth regime. that's what we're seeing happening here. we think we're going to be more in a growth regime because eventually the tapering is going to take effect and that's going to change what sectors you want
to be in and how the market responds to that. i think that's positive. the other positive factor about tapering is it really gives an incentive for banks to really lend money to small business and small business is where job growth comes from. >> absolutely. we hear that repeatedly. at the same time if you're talking about an environment where we might be seeing somewhat better growth perhaps that 2.75% level on the ten-year, maybe we go back up towards 3% what kind of investments should people be in now? should they be changing into for example, some of these floating rate funds getting just a ton of interest lately? >> yeah. i think -- i think the riskier part of the market is still going to be the bond market here, not the equity markets. remember, the markets, you know we're talking about bouncing off new highs, economy in slow growth phase but we are seeing
positives in the global market. looks like europe is starting to turn. china is doing good things there. japan is really trying to get -- so if the global economy starts to step up in here that's good for the u.s. economy. so we may be going in from kind of a slower growth phase to higher growth phase as the global market improves. >> now, i've got to ask you -- i don't mean to jump in but we're short on time. there's this narrative about whether markets are getting too frothy. i can't help but think of a yahoo! which is raising money without paying any coupon on its debt because it's saying to investors, you get the free option if our shares rise 50%. and there seems to be a ton of interest there. is that to you a sign, to make things better they'll use proceeds to fund a buyback of their own shares? is this a sign of a frothy market? >> i think it's frothy behavior
in the bond market, not so much the equity markets. you have really corporation taking advantage of lower interest rates. as we know there's still a lot of money on the side for capital investment. so if the economy starts to go better you'll see capital investment start to increase. that will be good for both job growth and the economy in general. >> maybe we need to tell yahoo! to build a new headquarters or something. john calamos, thank you for joining us and sharing your thoughts on this day. >> thank you, kelly. big change at walmart. i'm not talking about just the special hours on thanksgiving, although that is potentially very interesting to discuss. naming a 47-year-old long-time company insider to replace current boss mike duke. what's behind the shakeup? what does it mean for the company's future? we'll get into that when we come back. you really love, what would you do?" ♪ ♪ [ woman ] i'd be a writer. [ man ] i'd be a baker. [ woman ] i wanna be a pie maker. [ man ] i wanna be a pilot. [ woman ] i'd be an architect. what if i told you someone could pay you and what
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so if you're ready to see opportunities and see them through we say: let's get to work. because the future belongs to those who challenge the present. welcome back. walmart gaining ground after surprise announcement ceo duke is being replaced by doug mcmillan. it's happening in the new year. courtney reagan has been all over this story. joining us now. do you think this is the right reaction here the market is initially applauding this move? >> i do kelly. i think doug mcmillan has an interesting experience inside the company. he has been there for 22 years. he started as an associate at a distribution center. he's worked international. he knows merchandise. he knows online. so, he knows a lot about what it takes to get the company
running. he is obviously going to continue sort of the mr. sandm men mentality. i don't think walmart is doing anything wrong. i think the problem is pressures consumers are facing. >> should there be more of a shakeup? this company has been struggling -- you've talked about it at great length. while it may reassure people perhaps this was an opportunity to go in a different direction. >> sure. i think walmart is the world's largest retailer. when we look at numbers, often we look at percentage growth. if you look at it that way, it's not all that impressive. but they are just generating millions upon billions upon billions of dollars in revenue. they have a very very strained consumer. look we know the economy is recovery. i have to tell you, that lower income consumer doesn't feel it. they may have a job they feel secure in their job. wage growth has been stagnant. that's an issue. i don't know what walmart could do to get over it.
if you have ideas, i'm sure they'll willing to listen at this point. >> that's so true. stay right there. how do you read this? >> listen, we've run through the reasons he's been the guy. he's been with the company for quite some time. ceo of several different divisions. from a timing standpoint the only insight i would provide or that comes to mind is by putting him in now, you absolve him of any issues that might arise in the fourth quarter. >> that's immediately how this is being read. >> but i think there's a longer term play. not just who they decided to promote but they passed over bill simon, president of the u.s. for someone in charge of international. i think this speaks to the strategy going forward, it's all about the international growth. that's where walmart needs to be focused on in order for them to continue the growth story because it can be hard for them to do that based here in the united states. >> jon? >> international is now 29% of sales for walmart, up from 24% five years ago. he clearly has something to do with that. for a company that's looking for growth, i think that's important.
>> but they had -- remember they were going into south africa and then pulled out. the bribery issues in mexico. >> yeah. a lot of that was before his tenure, doug's tenure though that those specific dates they found were tied to the actual bribery. that was before he came in. so, i think he kind of dodged a bullet there. they're about to sustain a full frontal assault from amazon. don't forget on groceries, which is key for them not just in the u.s. but also internationally. i think maybe they want somebody in there who has a little more of a native tech mindset. >> potentially. i was going to go back to the bribery. we do it here in the united states, we call it lobbying. i don't know that it's really that big of a -- >> so cynical, carol. >> -- from a -- >> oh stop. bribery, lobbying are two different things. >> really? >> yes. >> seriously speaking the fact he's a bit younger does lend himself well to pursuing technology strategy. look i think obviously we e-commerce --
>> we're talking about going from someone in their 60s to late 40s. >> that's a substantial difference in terms of a focus. like you said technology mindset, international mindset, putting those all together mind him the right candidate. >> remember, he's sticking around for a year. this is not a clean handoff, see you later. >> that's right. he is the younger of the two and he'll be there potentially for 15 20 years versus bill simon who may not. he's young, dynamic, has all that experience, international as well as online, domestic. it makes a perfect choice. besides the fact he's a lifer there. he started there 24 years old in the distribution center. >> arkansas native. >> that worries me. >> makes sense. >> that worries me. a lifer. is he more likely to follow orders because that's how he rose up so fast? is he going to be willing or able to break -- >> i like courtney's point. this is an important one. how much do we blame walmart for their missteps and how much is a tough environment for their core consumer? >> exactly. when mike duke came in he came
in around the time they were trying to correct some of the problems where they actually tried to step up wall matter and move it out of its alley as that low-price discounter. they got rid of some of the things ultimately they brought back. mike duke has had -- he had some years to correct those mistakes tried to get it back on track. again, we're still seeing these headwinds with the consumer. look, they're very promotional this holiday season. i'd be surprised if we don't see them take some market share. if that's what that consumer wants and they want the best deal, they have to go to walmart to get it. not only are they offering better prices but extra insen tifs like the walmart discount cards and things to get them to continue to come back to walmart. >> i think you'll see is that this whole season across the board in all the retailers. not just walmart. walmart being the biggest one out there has more force behind it. >> well as jon was saying they're all looking at amazon over their shoulder. we have to leave it there for now. we'll watch the shares as we move through this important week
for walmart. let's send is it over -- i think dominic chu has another update for us. the most expensive stock on wall street, as cramer just put it. >> jim cramer calls this workday, one of the most expensive stocks on the street. cloud computing, workday is up after hours after they reported profits that came in we should say, smaller than expected net loss with sales better than expectations. 40% bump in unearned revenues at the company. overall, wday shares up 6 %, 7% in after-hours trade. >> in other words, they just got a little less expensive, did they not -- or more depends on what the "e" is doing, the "p" is moving around. it goes to the fact dan was making. workday is showing the growth. >> at least to a point where they're making a smaller than expected loss. it's moving trajectorywise in the right direction. >> thank you for laughing at kelly for getting my name.
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taper is also considering measures it may need to boost the economy if needed. it could mean real world fallout in terms of banks paying you, or we should say, charging you to keep money on deposit. kayla has been following this story and joins us now. what exactly is going on? >> they're not going do be paying you, not even close. here's how it works. in the fed minutes last week there was some signal that the members of the fed were thinking about lowering another key interest rate. that's the rate it pays banks. we put money into the bank and they lend money back out. because loans have been harder to get, they've been keeping the excess money with the fed to the tune of $2.47 trillion.
the banks make a 0.25%, so that's $600 billion a year in interest. the fed would do this to signal it would be committed to keeping long-term rates low. also it could save a little money because that increase there in those reserbs there. so, they could be lowering that. the banks are saying we need that income. we need that $600 billion because we have to pay the fdic insurance on these accounts. i looked at fdic data they only paid $11 billion in the last four quarters. something about these numbers doesn't add up. i don't believe this should be a cost that should be passed onto the consumer or really that you could even make that argument looking at the gross disparity in those numbers. >> sure. what's interesting, though is it puts into stark contrast exactly what the federal reserve's policy is aimed to do anyway. which is to kind of push people out of cash into riskier investments, rebalancing the portfolio, and ultimately kind of lifting the tide more broadly
and hoping that helps the economy recover. this would be a more draconian form but still taking place. >> it's interesting thinking about janet yellen's confirmation hearing and so much focus on asset bubbles and risk inherent in some strategis, pushing consumers, pushing corporations into some of these riskier assets and what exactly happens there. kel i don't think this will end up happening for two reasons. in the minutes it said one of the big downsides of doing something like this it's a hard policy to actually explain to the public. even harder for the banks because, you know they don't need another pr nightmare. bank of new york-mellon tried to do this on institutional clients two years ago. they had to pull back on the strategy because they got so much bad press. i don't think this is something you could roll out get away with and explain to people what it is and why it works. >> and that's not even getting into the money market functioning that could be affected as well. kayla, thank you for that. i want to get more reaction with the man who once led wells fargo
as chairman and ceo, knows a little about banking and he joins me. dick, thanks very much for being here. welcome. >> thank you, kelly. >> wanted to ask you right off the bat about this. if the fed were to cut interest on its reserves should people more or less be pushed out of cash to help the xli? >> i think that might happen. it's a mistake. we certainly don't want the saver to be taking on more risk than they already are taking if they're in the stock market or other things. and even more importantly, it won't have any benefit. a years ago credit was tight. businesses had a hard time finding loans. that is not the case today. i don't know of any credit-worthy business that not only -- that can't get a loan today but, quite frankly, probably has two or three banks calling on them asking to reduce their rate and loosen their covenants if they will do business with them. >> it's an interesting point.
>> i don't think it will have any positive impact at all. that's not true however, of the consumer. the problem with the consumer is the fact that because of the dodd/frank bill and the litigation risk banks aren't willing to make loans to consumers today that they would have been making in the past years because of the litigation risk if the loan goes bad that someone's going to sue them. we simply need to change the laws and open up consumer credit. and qualified mortgage of the cfpb is too restrictive. you know, fannie and freddie are suing people the justice department are suing banks because of relatively minor mistakes they're making on home mortgages that were accepted by fannie and freddie for over ten years. those things need to be fixed to loosen up the consumer side. the business side is not going to improve with this. >> there's a lot to unpack there. it's interesting you bring up that period while you were at
wells fargo. there are still lawsuits including some people who were leading the firm at that time saying the standards weren't nearly as high as they should have been surmount to being fraudulent for giving these peoples mortgages. what's wrong with that? it's quite clear some of these mortgages wasn't clear what they should have been for investors. >> that's correct. those loans were originated by s&ls and they were securizing and issued by banks. commercial, mainstream banks are not doing the bad things you're seeing in litigation today. >> except those that had or supported investment banks. >> well, i don't know how they support them. >> in other words, if we have a system whereby there's a reward for the people who are creating this stuff, even if -- even if there's a step over those who aren't directly involved this
is a system and you can look at some headlines today, dick, the number of new structured finance deals that are coming out is astonishing. this sector was supposed to be left for dead several years ago. it's quite clear there's demand ironically, from a lot of pension funds who really need to mike that return a 7%, an 8%. what we're seeing now is basically some of the old way of doing things that's coming back to meet this demand in the market. >> that's true. i'm just saying that that is not coming from mainstream commercial banks. it may be coming from pension funds. kelly, what is the fed telling you to do? go out on the risk curve. take more risk. >> sure, sure. >> you know when you have the federal reserve saying that people should be taking more risk at the level of asset prices today, well you know that's why you have these products being created and pension funds and others doing it.
these qe2 and 3 and 4 are not good for our economy. and that's why we have a lot of slow growth because these aspects are ineffective. >> final question. i know we've got to go. are you in all cash right now? where are your investments? >> well, i'm not in all cash. but i am selling more equities than i am buying. and my major area is stocks that have a good dividend. >> okay. well, we know -- >> because fixed income isn't any good and cash isn't any good. you take good companies that are going to likely keep their dividend and increase it over time, that's where i have most of my money. >> yeah you and a lot of other people creating huge demand for that space. dick appreciate your thoughts. a whole range of things. there's a lot more we need to get into. please come back. >> i will kelly. >> what's trending right now on cnbc.com? we wanted to get you a real-time report what's happening online.
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obama care is a big puller for us. right now this story is getting a lot of attention. one of our reporters found out about a book doorway to sign up for obama care. you'll be amazed. it means picking up the phone, talking to an actual person. but people are loving this one. now, i've got a little horse race going on because you did an interview, you were part of an interview earlier this morning on "squawk on the street," kelly. you talked to a technical analyst about apple stock and how it might be losing some shine and competitive threats it faces. it's a big puller, too. it's beginning to lose a little steam. people are back out of it now and jumping into a piece we have written up by diana olick touching on an interview you did earlier with robert frank about chinese money coming to the united states. she took a look at all the buying going on in a california neighborhood, how they're investing in real estate as an investment but also as a way of giving their kids something to work on. to live with while being educated. there you go. people are diving into that one.
now if you look down here, i've got a dark horse coming up. >> oh, no. >> this is just -- >> what does the dark horse say? >> this guy is just moving up the scale right now. it's an op-ed piece where we have someone from stock traders daily questioning whether or not this rally can last. we see this a lot on the cited. you can see it right on the heat map. as soon as we put it up it starts climbing up the scale. >> if there had to be a theme of our website every day, it would include apple, the ticker it would include why this rally isn't for real, and, yeah it would probably include some ridiculous real estate slide show. thank you, sir. the obama care one is interesting in particular. >> diana olick will come -- >> no one knows what's happening in the california real estate market than you do right now. >> it's hot over there. it's hot over here too. but lots of chinese buyers coming in. i've heard that there are -- there's a surge of interest from people in china looking to get
their money out. that's also in the art world leading to a surge. people buying -- >> look at the wine sale. >> bitcoin being driven by the chinese market. they were looking to thought they were going into hard assets. going into virtual assets as well. >> anything to preserve wealth move it out of the country. >> there's no chance of chinese diversifying. >> they're driving the bitcoin market right now, dan. yes, they are. >> people in the country need to be diversifying their reserves into bitcoin. >> those people deserve, knock on wood -- >> you're such a bitcoin hater. >> that's what's causing the movement. you hear it all the time in the new york city, all the russian money coming in because the russians are doing the same thing. buying a place for their kid, they come here and go to school. same as chinese in california makes sense. >> that's a question to some
extent. it's are they coming here are their kids coming here and coming up through the school system or are these just investment properties and place to store wealth? will it look like london with ghost blocks and ghost neighborhoods? >> a little both. we bought the russian billionaire who bought the time warner center. i think it's a little both. they're looking to diversify. equities in this country, some people think have gotten well ahead of themselves based on the economy. hard assets and real estate is never going out of style. >> there is an underlying theme to all of that. jon, people still -- they're skeptical about apple. should we be worried about the ipad christmas? >> there are reasons to worry about the ipad christmas because we've seen that growth slow down. we've also seen overall theme of paranoia. are the numbers too big, whether for apple, the dow. everybody's looking for the pull
back. >> and getting into bitcoin as a result. the ultimate paranoia trade. history on wall street again today but we fell short of closing above the 4,000 skid mark for nasdaq. we weigh in if that's in the cards for tomorrow. (vo) you are a business pro. maestro of project management. baron of the build-out. you need a permit... to be this awesome. and you...rent from national. because only national lets you choose any car in the aisle...
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>> welcome back you know small gains on the dow. did you notice the final close today? lucky 7s? we closed up 7 points 77 points with the dow jones industrial average. maybe it's lucky. when is the you saw that? 30 second on the clock. our next guests will tell us what can move your money. oliver perchy joins us. brian evans and ""fast money"" iguy adame. >> you asked me last second is this rally real? my answer is yes, as long as we have inconsistent data. corporate earnings will drive it up the wall of worry. look for leading indicators in the richmond manufacturing index. those will be key and also consumer confidence and investor
sentiment. those will help lift stocks as well. we are generally speaking pretty optimistic into the rest of the year. >> brian you get eight more seconds. >> i am also optimistic with the reports coming out. they are all expecting to see a big increase from last month, including building permits which will be coming out higher than housin earnings. we have barnes and noble. tiffany's, dsw andsayles based upon my drone domestic fund we see these properties properly valued. we have seen a 10% negative movement in the last month on them. my bond fund sees this trend to continue with opportunities outside of the u.s. treasuries. >> all right. thank you. guy, what about you? investors radar screens? >> what's up? tiffany's tomorrow, be every the bell give you great insight as the high net worth investor. what is going on on that end of the spectrum?
michael kors has been a monster. tiffany's probably rich. last quarter, revenue miss i think you will see similar again which probably trades the stock down to 77 77.5 i think you buy it there. every pullback has been a great opportunity to buy it again. i think that's what you will see tomorrow. great names, stretched at great love tiffany's if i don't get out of here will miss my show. >> just for the see y you said in on ""fast money."" thank you all for starting your day a lit ne ♪ ♪ [ male announcer ] this december, experience the gift of true artistry and some of the best offers of the year at the lexus december to remember sales event. this is the pursuit of perfection. stick with innovation. stick with power. stick with technology. get the flexcare platinum. new from philips sonicare.
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penney. >> kel, how about this? how about new ceo making a regulatory filing disclosing he bought 125,000 of his own shares jc penney shares at $8.95 for about a million dollar purchase price back on november 22nd. jc penney shares are right now about 2, 3% in the after-hour session. any time you see the pencer buying, you wonder whether or not it will be a buying seen. >> dan, is there literature on this? isn't it typically the case pencers aren't the best market timers? >> no listen. the biggest period for pencer buying was the peak in 2007. i think a lot of pencer boying is done on a pre-ordained basis so to speak. he is a new ceo. it's encouraging. full disclosure is a buy on the stock. >> i thought you were going to say better than jc penney this week. >> i would go. >> a new brand of sheets coming out with them next week. >> okay.
>> you got to think synergy, you got to think bigger with one furnishing. >> as long as i can go and channel check, i'm perfectly fine. it's got to be encouraging, how bad the sector in the company, that's a positive. >> we were just talking earlier how we have seen a 35% rally in these shares another people have been looking at this as perhaps a short-term rebound play, october comes improved. there are people saying the 4th quarter is 8%. >> j.c penney macy's stock is the single best performer in the s&p 500 this month. to a large degree you could argue being priced for bankruptcy. all they need to do is see stabilization and going forward the stocks should appreciate. >> over the weekend, we went shopping. there is macy's. there's people climbing the walls. around the corner, j.c. penney's it's a vastly different quarter. they might be starting to make their way back there. but nothing like what you saw at macy's. they're fighting to get in.
>> i think there is a broader issue here and the broader issue is that the mid-level consumer is going away there is a bifurcation in the market in terms of the high end consumer and a value consumer. >> right. >> i think j.c. penney is right in that middle identity. unfortunately, overtime we will continue to see that shrink, maybe buying the stock. if you are a long-term investor i don't see jc penney as a brand. >> this might be the blackberry of retail. >> whew. >> this is not an s&p 500 company for very long. >> that's right. >> it can go down to the s&p 400 as of friday. keep that in mind too. >> a lot of people indexing have it in there. it will be a space where only the riskier of the bunch play. okay. so by the way, how many shares were you just staying? what's the size of this purchase that he just made? >> 112,000 shares as a purchase price of $8.95. it roughly works out to a little
over a million dollars in total purchase price here. >> does he pick you up when he said that? >> $1 million. really appreciate your time this afternoon, for bearing with me. it's been jun fun. we're seconds away from "fast money" now melissa lee joining us. melissa, 3d printing. that's the theme of the day? >> absolutely, kelly, a lot of momentum stocks. we will have momentum stocks. we are talking to one of the children of momentum triple d, 3d systems to tell us about the challenges you may face when it comes to patents and the run in the stock. because that has been as you know kelly, tremendous. >> i'm going to leave the triple hd joke on the saibl table. >> tanks, kelly. >> ""fast money"" starts right now. i'm mel lisa lee. nasdaq hitting 4,000 for the first time since september of 2000. it's the noun tech kaen